Character.ai, an AI app enabling users to design AI personas, has seen a surge in U.S. mobile app usage, reaching 4.2 million monthly active users since its May 2023 launch. In comparison, ChatGPT reports nearly 6 million monthly U.S. actives.
Notably, Character.ai has captured a significant portion of the younger demographic, with 60% of its web audience coming from the 18-24 age bracket. ChatGPT's traffic from this group declined to 27% in July.
These apps are quite different from one another in their approach to conversational AI, but there may be something to learn here about how to package and market AI apps.
On the global front, ChatGPT maintains a lead with 22.5 million monthly active users, overshadowing Character.ai's 5.27 million. While ChatGPT remains dominant on the web, Character.ai's users show a marked preference for mobile interactions.
Character.ai's recent growth is backed by a substantial $150 million in Series A funding, valuing the startup at $1 billion. The company was founded by Noam Shazeer and Daniel De Freitas, known for their contributions to Google's LaMDA project.
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ABOUT SHELLY PALMER
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.
